Inflation Sticks At 1.8% In July

(BBC) – A KEY MEASURE OF INFLATION in the UK has unexpectedly remained at 1.8%.

Economists had expected the Consumer Prices Index (CPI) to decline to 1.5% in July.

The Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments, also unexpectedly rose to -1.4%, from -1.6%.

The RPI rate has fallen sharply over the past year as the Bank of England slashed interest rates to a record low amid a recession. In June, it fell to its lowest since records started in 1948, according to the Office for National Statistics.

Among other things, the RPI should mean lower season ticket prices for trains next year.

Annual rail fare rises are pegged to the RPI figure in July of the prior year, plus an average of 1%.

So a £2,000 season ticket would fall by £8, based on an expected cut in prices of 0.4%.

Last July, the RPI was 5%, meaning that rail prices rose this year by 6%.